Abstract

In many operations management problems, including vessel scheduling in liner shipping, people need to make and announce an operations plan in advance, with tremendous efforts being paid to optimize the plan. When the plan is executed in real time, however, it is constantly subject to different unexpected disruptions, making the original plan sub-optimal or even infeasible. Therefore we have the need of dynamically revising the operations plan at the execution stage, a problem often referred to as disruption management. In the context of liner shipping, disruption events may include bad weather, unusual port congestion and even port closure, etc., with the direct consequence of delaying the vessels from their schedules. In this chapter, we will study how disruptions can be effectively managed in liner shipping. We will show how to model and formulate such problems, and present a few key results of the solution schemes and managerial insights observed.

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